AgdaPkt 2007-12-10 - Laserfiche WebLink

Browse Search

R"e.....:'.p... 0,:"': '::R" 'T'" .... . ...... -" . . ."'-. ...".. ," ",". ".. ....",. 6.20 Page 1 Tothe;R7~r::Ji:~:~::'~~~7~i~~i~~ December 10, 2007 SUBJECT Certificate of Completion for Hallmark Apartments - KDF Communities ReCOMMENDATION That the Agency: (1) approve by Resolution, a Certificate of Completion for Hallmark Apartments, and (2) authorize by Motion, the Redevelopment Agency Executive Director to execute all documents pertaining thereto. BACKGROUND In December 2003, the City Council and Redevelopment Agency Board approved a three party Owners Participation Agreement (OPA) with KDF Hallmark, L.P. for the acquisition and rehabilitation of Hallmark Apartments. Hallmark Apartments, 71 market rate units located at 531 Woodside Road, was subsequently converted from market rate to affordable rents using Tax Credits as the funding source. Tax Credit rules require 90% of the units to have rents affordable to households at 60% of Area Median Income and 10% of the units to have rents affordable to 50% of Area Median Income. The project required substantial rehabilitation and energy efficiency improvements to reduce operating costs and prolong the life of the property. The improvements cost approximately $800,000. Tax Credit financing required the units to remain affordable for 55 years. KDF told the Housing & Human Concerns Committee (HHCC) that if the City assisted in the acquisition of the units, they would provide 30% of the units affordable to households earning 50% of the Area Median Income and 70% of the units affordable to Households at 60% of Area Median Income. The HHCC recommended that $650,000 be allocated to the project towards acquisitionlrehabilitation costs. The City and Agency subsidy was provided in the form of a loan of $500,000 in HOME funds and $150,000 in Redevelopment Housing Funds. Beginning in year 31, the City and Agency will receive monthly principal and interest payments on these funds for 25 years. The loan is secured by a recorded OP A naming the City and Redevelopment Agency and their respective interests. The funds were used to replace the roof, exterior siding and paint, repair dry rot and termite damage, replace windows and sliding glass doors with energy efficient products, repair concrete walkways, and provide playground improvements. The work was completed in early September 2005. The OPA provides for the Redevelopment Agency to issue a Certificate of Completion after the improvements have been completed and all of the terms of the OPA have been met. No further action is required by the City. Recorded Notices of Completion have been provided by the Project Owner dated September 13, 2005. The Certificate of Completion is now being submitted for Agency approval.